This season of thanks certainly should extend to financial matters for many Southern Californians.
Yes, the region has its economic challenges, but the year has provided many uplifting financial trends that should give hope for future advances in the local business climate.
So, to get us into the seasonal good cheer, here are a dozen holiday treats: 12 business patterns for Southern Californians to celebrate in between the turkey, stuffing, cranberries, and pie!
1. Layoffs way down: Fewer Southern Californias are losing their jobs, at least by one key measure.
State employment figures show 690,402 claims were filed for unemployment insurance in the first eight months of 2017 from the four-county region. This year’s pace is down 3 percent from the same period a year ago after falling 1.6 percent in 2015. And it’s down 60 percent from mid-recession 2009.
2. Pay is rising: Local bosses have fewer jobless folks to choose from, so they’ve been forced to pay up for talent.
One federal government pay measurement shows wages in the region rose in the third quarter at a 3.2 percent annual rate after rising at a 3.8 percent annual pace in 2015. This summer marked the 12th consecutive quarter local bosses increased pay at a faster pace than peers nationwide.
3. Women advance in pay: California women have the nation’s second-smallest gap between their typical wages and that of men.
Last year’s gender pay differences — based on median weekly earnings of workers in full-time jobs, both wage and salary positions — show California women earned 88 percent of men’s pay, behind only Vermont. That’s a statewide improvement from 2015 when California women earned 84.8 percent of men’s pay.
4. Confidence up: California shoppers don’t appear to be spooked by economic sluggishness or political turmoil.
The Conference Board’s consumer confidence index for the state for October rose to a 10-year high. Why? California’s view of present economic conditions in October was at a six-month high and future expectations were at their best in nine months.
5. Big and growing: The economy of Los Angeles and Orange counties hits 13-figures.
The federal government says the L.A.-O.C. region’s gross domestic product rose by $38 billion last year to $1.002 trillion. Only New York is bigger on a metro level and only 15 nations have larger GDPs. In Riverside and San Bernardino counties, GDP reached $149 billion in 2016, up $4 billion and the nation’s 23rd busiest business market.
6. Homes sell quickly: It frustrates house hunters but Southern California housing is a liquid investment.
By comparing inventory with the pace of new purchases, ReportsOnHousing estimates the “market time” as of Oct. 19 — how long a homeowner’s property would go from listing to escrow — was down by 20 days in a year to 65 days or a 23 percent faster sales pace. Supply of existing homes to buy is down 17 percent in a year as demand is up 9 percent.
7. Construction boom: Take heart, frustrated seekers of everything from homes to business space to more roads.
Southern California is the nation’s biggest creator of construction jobs in the nation. The five-county region hired 35,700 construction workers in the year ending in August to a force of 444,000, according to data from the Associated General Contractors of America. That’s one-sixth of all new U.S. construction workers.
8. More rentals are coming: New construction may ease the pressure on local renters wallets.
Southern California has seen 37,000 new apartments units built in the region since the start of 2015, according to CoStar, a commercial real estate tracker. And more than 36,000 more are under construction. But only 11 percent of these new rentals will be targeted for lower-income tenants.
9. More parental leave: Employers of mid-sized companies can get bonding time with their babies.
This fall, the New Parent Leave Act was made law in California. It gives 2.7 million mothers and fathers the right to 12 weeks of job-protected leave to have time with newborns. The law is aimed at folks at employers with 20 to 49 workers. Those at larger businesses were already protected by federal law.
10. Busy airports: What’s messy for travelers is good for local tourism.
The region’s six major airports report a total of 62.9 million passengers went through the area’s terminals in 2017’s first seven months, up 2.8 million in a year or a gain of 4.7 percent. Los Angeles International had the biggest gain in passenger count; Long Beach the biggest percentage gain; and Orange County the only dip.
11. Amazon’s HQ2 could be here: The region has a fighting chance at winning the coveted second headquarters site for the retailing giant.
The battle for what’s dubbed “HQ2,” a campus that eventually will house some 50,000 supposedly high-paid Amazon workers, drew 238 bids. Most notably, billionaire developer Don Bren promised to build the facilities for Amazon in Irvine, with the company as his tenant. He’s got the land, skill — and money — to do it and that will get Amazon leadership’s attention.
12. Home-cooked meals get cheaper: Thanksgiving dinner will cost the least since 2013 and the region’s overall home food expenses are down.
The American Farm Bureau Federation said feeding 10 with all the trimmings should cost an average $49.12 nationwide, off 1.5 percent in a year. A drop in turkey prices is key. Regionally, the local Consumer Price Index tells us the overall cost of food prepared at home is down 0.6 percent in a year. That’s a rare bright spot in the inflation picture as the cost of living is rising at its fastest pace in six years.
